The four major functions of the Federal Reserve Bank are to

Question

BlackTom AI · Accepted Answer

The question asks about the four major functions of the Federal Reserve Bank. To understand the options, we should evaluate them against the Fed’s traditional roles.
Option 1: 'conduct monetary policy.' This is indeed a central function of the Fed. Through tools like setting the federal funds rate, open market operations, and changing reserve requirements, the Fed aims to influence money supply and credit conditions to achieve goals such as maximum employment and price stability.
Option 2: 'collect tariffs and taxes on foreign imports.' This is not a role of the Federal Reserve. Tariffs and taxes are fiscal policies typically set by Congress and implemented by the executive branch, not by the central bank.
Option 3: 'provide payment and other financial services.' Providing payment services (clearing, settlement, and access to the financial system) is a core function of the Fed. It helps ensure smooth and secure processing of transactions between banks and with the U.S. government, though often discussed more broadly as part of the Fed’s financial services role.
Option 4: 'manage the stability of the financial system.' This aligns with the Fed’s responsibility for financial stability, including monitoring systemic risks and acting as a lender of last resort during crises to prevent widespread financial disruption.
Option 5: 'manage the value of the US dollar.' The Fed does not directly set the value of the dollar. Exchange rates are determined by market forces and international factors; the Fed influences the nominal value indirectly through monetary policy, but it does not “manage” the dollar’s value as a target.
Option 6: 'supervise and regulate depository institutions.' Banking supervision and regulation is another key Fed function, ensuring the safety and soundness of banks and thrift institutions and protecting the U.S. financial system.
In summary, options 1, 3, 4, and 6 reflect established Fed functions, while options 2 and 5 describe roles outside the Fed’s mandates or inaccurately frame its capabilities. While there is some overlap among options, the statement in option 1 is a clear, canonical summary of one of the Fed’s primary functions, making it the correct choice in this context.

The four major functions of the Federal Reserve Bank are to

查看解析

登录即可查看完整答案

类似问题

Which of the following statements is not the responsibility of the RBA?

The chair of the Federal Open Market Committee is

The Federal Reserve System is a(n)

The Federal Reserve System is charged with:

Part 1The primary reason for the creation of the Federal Reserve System LOADING... was:Part 2 A. to create a single central bank similar to the Bank of England. B. to reduce or eliminate future bank panics. C. to eliminate state-chartered banks. D. to stabilize short-term interest rates.

Under the European System of Central Banks, the Governing Council is similar in structure to the ________ of the Federal Reserve System.

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单

The four major functions of the Federal Reserve Bank are to

查看解析

登录即可查看完整答案

类似问题

Which of the following statements is not the responsibility of the RBA?

The chair of the Federal Open Market Committee is

The Federal Reserve System is a(n)

The Federal Reserve System is charged with:

Part 1The primary reason for the creation of the Federal Reserve System LOADING... ​was:Part 2 A. to create a single central bank similar to the Bank of England. B. to reduce or eliminate future bank panics. C. to eliminate​ state-chartered banks. D. to stabilize​ short-term interest rates.

Under the European System of Central Banks, the Governing Council is similar in structure to the ________ of the Federal Reserve System.

更多留学生实用工具

希望你的学习变得更简单

Part 1The primary reason for the creation of the Federal Reserve System LOADING... was:Part 2 A. to create a single central bank similar to the Bank of England. B. to reduce or eliminate future bank panics. C. to eliminate state-chartered banks. D. to stabilize short-term interest rates.